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Car finance ›
Car finance on benefits
If you’re looking for car finance while on benefits, it can be tricky to get approved, as not all lenders consider benefits as income. Find out how we could help.
Car finance on benefits
If you’re looking for car finance while on benefits, it can be tricky to get approved, as not all lenders consider benefits as income. Find out how we could help.
Can you get car finance on benefits?
It is a common misconception that people on benefits can’t get approved for car finance. While many lenders don’t accept people receiving benefits, it’s still possible to get car finance on benefits.Â
We believe that everyone should have access to car finance, regardless of whether or not they are receiving benefits.
Our Conditional Sale agreement allows you to spread the cost of your new car over 36 to 60 months. Once you have made your final monthly payment, you’ll legally own the car.
How does car finance for people on benefits work?
It’s important to note that not all lenders accept benefits as a valid source of income, but we do.
If you decide to apply with us, your monthly income must be at least £1,000 after taxes. This amount must come from at least 1 primary source of income, but you can also include additional sources of income to reach the £1,000 threshold.
What type of benefits do we accept as income?
As well as a salary or pension, we accept the following benefits as primary sources of income:
- Disability Living Allowance (DLA)
- Carers Allowance (CA)
This means that you must have at least a salary, pension, or one of the above benefits to be eligible to apply with us.
As well as primary sources of income, you can include any additional sources of income to help you meet the income requirement of £1,000 a month (after taxes):
- Universal Credit (UC)
- Employment and Support Allowance (ESA)
- Child Tax Credits
- Working Tax Credits
- Child maintenance payments
- Housing Benefit
- Child Benefit
- Guardian's Allowance
- Industrial Injuries Disablement Benefit
- Bereavement Support Payment
- Attendance Allowance
- Constant Attendance Allowance
- Armed Forces Independence Allowance
- Reduced Earnings Allowance
- War Widows' Pension
Can you get car finance on benefits?
It is a common misconception that people on benefits can’t get approved for car finance. While many lenders don’t accept people receiving benefits, it’s still possible to get car finance on benefits.Â
We believe that everyone should have access to car finance, regardless of whether or not they are receiving benefits.
Our Conditional Sale agreement allows you to spread the cost of your new car over 36 to 60 months. Once you have made your final monthly payment, you’ll legally own the car.
How does car finance for people on benefits work?
It’s important to note that not all lenders accept benefits as a valid source of income, but we do.
If you decide to apply with us, your monthly income must be at least £1,000 after taxes. This amount must come from at least 1 primary source of income, but you can also include additional sources of income to reach the £1,000 threshold.
What type of benefits do we accept as income?
As well as a salary or pension, we accept the following benefits as primary sources of income:
- Disability Living Allowance (DLA)
- Carers Allowance (CA)
This means that you must have at least a salary, pension, or one of the above benefits to be eligible to apply with us.
As well as primary sources of income, you can include any additional sources of income to help you meet the income requirement of £1,000 a month (after taxes):
- Universal Credit (UC)
- Employment and Support Allowance (ESA)
- Child Tax Credits
- Working Tax Credits
- Child maintenance payments
- Housing Benefit
- Child Benefit
- Guardian's Allowance
- Industrial Injuries Disablement Benefit
- Bereavement Support Payment
- Attendance Allowance
- Constant Attendance Allowance
- Armed Forces Independence Allowance
- Reduced Earnings Allowance
- War Widows' Pension
If your benefit isn’t listed, please contact our team to discuss your options. Alternatively, you can get a quote online to see if we can help.
Can you get car finance on Universal Credit?
If you’re receiving Universal Credit, it may be difficult to get approved for car finance. This is because many lenders don’t accept this or other benefits as a source of income.
However, we understand that having a reliable car is essential, regardless of whether you’re on Universal Credit or any other benefit. We accept Universal Credit as an additional source of income.
This means that we can accept people on Universal Credit as long as they have at least 1 primary source of income along with it. Your sources of income must total a minimum of £1,000 per month after taxes.
What do you need for benefit car finance?
To get car finance, you’ll need:
- Monthly earnings over £1,000 (after tax)
- To be aged between 20 and 75
- A full valid UK driving licence
- 2 consecutive months of payslips
We can finance cars that meet our lending criteria:
- Priced between £4,000 and £35,000
- Up to 120,000 miles on the clock
- No older than 15 years by the end of the agreement
If your benefit isn’t listed, please contact our team to discuss your options. Alternatively, you can get a quote online to see if we can help.
Can you get car finance on Universal Credit?
If you’re receiving Universal Credit, it may be difficult to get approved for car finance. This is because many lenders don’t accept this or other benefits as a source of income.
However, we understand that having a reliable car is essential, regardless of whether you’re on Universal Credit or any other benefit. We accept Universal Credit as an additional source of income.
This means that we can accept people on Universal Credit as long as they have at least 1 primary source of income along with it. Your sources of income must total a minimum of £1,000 per month after taxes.
What do you need for benefit car finance?
To get car finance, you’ll need:
- Monthly earnings over £1,000 (after tax)
- To be aged between 20 and 75
- A full valid UK driving licence
- 2 consecutive months of payslips
We can finance cars that meet our lending criteria:
- Priced between £4,000 and £35,000
- Up to 120,000 miles on the clock
- No older than 15 years by the end of the agreement
Car finance on benefits
We understand that your current financial situation or past difficulties with making payments might have resulted in bad credit, making it difficult to get car finance.
It is important to note that claiming benefits doesn’t necessarily mean that you have poor credit. However, even if you do, we could still help.
We’re bad credit car finance specialists with over 30 years of experience helping people up and down the UK. We can help you even if you have been refused car finance by mainstream lenders, or are looking for car finance with an IVA or CCJ.
The first step towards getting finance is to try our car finance calculator. When you’re ready, you can get a personalised quote and instant decision in less than 5 minutes.
Can I get car finance on benefits?
Yes, you can still get car finance on benefits even if you have very bad credit. It just might mean you have to use a specialist lender such as Moneybarn.
There’s lots of reasons why you might have a very bad credit score or no credit history:
- If you have a high credit utilisation (you use a high percentage of the total credit available to you)
- You are frequently using an overdraft and are looking for car finance
- You have always paid for everything in cash, so you have little credit history because you’ve never taken out credit before
- You’ve missed payments in the past or have a default and are looking for car finance
We help thousands of customers every month onto a better road ahead. To see if we could help you, get a quote in less than 5 minutes.
Conditional Sale finance at a glance
We can accept people receiving benefits where other lenders can’t.
Finance is subject to status and affordability checks.
There are no mileage restrictions like other types of finance such as PCP.
You won’t own the car until the final payment is made.
You’ll own the car at the end of the agreement.
You may be offered a high APR if you have bad credit.
There are no late payment charges or hidden fees during your agreement.
The car may be repossessed if you can’t make payments.
Bad credit car finance on benefits
We understand that your current financial situation or past difficulties with making payments might have resulted in bad credit, making it difficult to get car finance.
It is important to note that claiming benefits doesn’t necessarily mean that you have poor credit. However, even if you do, we could still help.
We’re bad credit car finance specialists with over 30 years of experience helping people up and down the UK. We can help you even if you have been refused car finance by mainstream lenders, or are looking for car finance with an IVA or CCJ.
The first step towards getting finance is to try our car finance calculator. When you’re ready, you can get a personalised quote and instant decision in less than 5 minutes.
Conditional Sale finance at a glance
There are no mileage restrictions like other finance types such as PCP.
You’ll own the car at the end of the agreement.
There are no late payment charges or hidden fees during your agreement.
Finance is subject to status and affordability checks.
You won’t own the car until the final payment is made.
You may be offered a high APR if you have bad credit.
The car may be repossessed if you can’t make payments.
Join thousands of monthly customers like Gary
I live in Wales with my wife and 6 children and am a carer for one of my kids. Moneybarn offer great customer service, and every time I’ve spoken with them they are polite and completely understanding. You couldn’t ask for more really – Gary.
Join thousands of monthly customers like Gary
I live in Wales with my wife and 6 children and am a carer for one of my kids. Moneybarn offer great customer service, and every time I’ve spoken with them they are polite and completely understanding. You couldn’t ask for more really – Gary.
Car finance on benefits with a good credit score
When you apply for car finance, the lender will assess your financial situation and borrowing history. Having good credit can make it easier to get approved for car finance on benefits.
Paying your bills on time, being mindful of how much credit you use, and not making too many credit applications in a short space of time can help to improve your credit score. This can make it easier to get approved for car finance.
Car finance on benefits near me
We help thousands of customers every month to get a car on finance, even if they have benefits. We provide vehicle finance across the UK, including Northern Ireland, so we could help get car finance near you.
We finance many car brands, not just the ones mentioned on our car finance brands page, and we can also help you buy a electric car on finance or a hybrid car on finance.
Car finance on benefits with a good credit score
When you apply for car finance, the lender will assess your financial situation and borrowing history. Having good credit can make it easier to get approved for car finance on benefits.
Paying your bills on time, being mindful of how much credit you use, and not making too many credit applications in a short space of time can help to improve your credit score. This can make it easier to get approved for car finance.
Car finance on benefits near me
We help thousands of customers every month to get a car on finance, even if they have benefits. We provide vehicle finance across the UK, including Northern Ireland, so we could help get car finance near you.
We finance many car brands, not just the ones mentioned on our car finance brands page, and we can also help you buy a electric car on finance or a hybrid car on finance.
How to apply for car finance on benefits
How to apply for car finance on benefits
Get an online quote in under 5 minutes. We use a soft check at the point of application, which won’t impact your credit score and provides an instant decision.
If you’re approved, use our Vehicle Finder to find your dream car. Our friendly experts will be on hand to help with the search, so you can get onto a better road ahead.
We’ll help you with providing any paperwork and signing your agreement. Once your agreement is finalised, we’ll pay the dealership and you can collect your new car!
Get an online quote in under 5 minutes. We use a soft check at the point of application, which won’t impact your credit score and provides an instant decision.
If you’re approved, use our Vehicle Finder to find your dream car. Our friendly experts will be on hand to help with the search, so you can get onto a better road ahead.
We’ll help you with providing any paperwork and signing your agreement. Once your agreement is finalised, we’ll pay the dealership and you can collect your new car!
Why choose Moneybarn?
Great customer service
We support thousands of people up and down the country each month, even if they’re receiving benefits. Our customers rate us as Excellent on Trustpilot.
Award-winning finance
We continue to win industry awards for our approach to responsible lending, including ‘Vehicle Finance Provider of the Year’ and ‘Sub-Prime Lender of the Year’ for 2023.
Leading specialist lender
As one of the UK's leading lenders for bad credit, we accept people let down by mainstream lenders, with over 30 years of experience helping people onto a better road ahead.
Why choose Moneybarn?
Great customer service
We support thousands of people up and down the country each month, even if they’re receiving benefits. Our customers rate us as Excellent on Trustpilot.
Award-winning finance
We continue to win industry awards for our approach to responsible lending, including ‘Vehicle Finance Provider of the Year’ and ‘Sub-Prime Lender of the Year’ for 2023.
Leading specialist lender
As one of the UK’s leading lenders for bad credit, we accept people let down by mainstream lenders, with over 30 years of experience helping people onto a better road ahead.
What will affect your eligibility for car finance on benefits?
Before applying for finance, you may decide to check your credit score to see if any of the following factors may affect your chances of getting approved:
- Late or missed payments: Falling behind on bills can leave a mark on your credit file
- Being in or having an IVA: Having an IVA (Individual Voluntary Agreement) can make it hard to get approved, and you may have to use a specialist lender
- High credit utilisation: Using a high percentage of your total available credit can affect your chances of getting approved
- Having a CCJ: A CCJ (County Court Judgment) is when someone can’t repay their debts, and their creditors get a court judgment against them
- Bankruptcy: If you’ve been discharged from bankruptcy over 6 years ago, we can help you finance your next car
What will affect your eligibility for car finance on benefits?
Before applying for finance, you may decide to check your credit score to see if any of the following factors may affect your chances of getting approved:
- Late or missed payments: Falling behind on bills can leave a mark on your credit file
- Being in or having an IVA: Having an IVA (Individual Voluntary Agreement) can make it hard to get approved, and you may have to use a specialist lender
- High credit utilisation: Using a high percentage of your total available credit can affect your chances of getting approved
- Having a CCJ: A CCJ (County Court Judgment) is when someone can’t repay their debts, and their creditors get a court judgment against them
- Bankruptcy: If you’ve been discharged from bankruptcy over 6 years ago, we can help you finance your next car
Other ways we could help
Other ways we could help
There are several reasons that may affect your eligibility. We specialise in helping people with poor credit get car finance.
Do you have very bad credit and want to apply with a partner? Find out more about joint car finance.
We understand that it might be hard to save a deposit for car finance. Read more about car finance with no deposit.
There are several reasons that may affect your eligibility. We specialise in helping people with poor credit get car finance.
Do you have very bad credit and want to apply with a partner? Find out more about joint car finance.
We understand that it might be hard to save a deposit for car finance. Read more about car finance with no deposit.
Car finance on benefits FAQs
Can I get car finance on disability benefits?
Each lender has their own requirements, and some may not be able to accept benefits. However, we understand that claiming benefits doesn’t change the need to have a reliable car to get around.
To be accepted for car finance with us, you must have at least 1 primary source of income: a salary, pension, Disability Living Allowance (DLA), or Carers Allowance (CA).
You can supplement this with other benefits, including disability benefits such as Industrial Injuries Disablement Benefit, which we consider as additional income. In total, you must earn over £1,000 a month after tax.
When you’re ready, you can get a quote in less than 5 minutes and see if we can help you.
Can I get car finance with a low income?
It is possible to apply for car finance even if you have a low income. We can help you if your monthly income, after tax, is at least £1,000. Check out our accepted sources of income to see if you qualify.
If you are worried that your income may not be enough or you are unemployed and looking for car finance, you could apply with another person using joint car finance.
This means that you and another person apply for finance together, and both your details will be used to support the application. However, your combined monthly income must be at least £1,300 after tax.
Can I get a car on finance with PIP?
Unfortunately, we don’t accept Personal Independence Payment (PIP) as a source of income. However, there are several benefits that we do accept. Check out the list of incomes we accept to see if you qualify.
Can I get guaranteed car finance on benefits?
It isn’t possible to guarantee car finance on benefits, because it doesn’t exist. No responsible lender will offer this, because they must use affordability and credit checks to assess your eligibility.
It is unethical to claim that you can guarantee approval to anyone, including people on benefits, because everyone’s eligibility is different.
The FCA’s rules mean that lenders must assess the creditworthiness of a customer before they can offer credit. Also, the Consumer Credit (Advertisements) Regulations 2010 protects customers from false or misleading claims, such as ‘guaranteed car finance on benefits’.
You should be wary of any lender claiming to offer this. For a full explanation, please see page that dispels the myth of guaranteed car finance.
Can I get car finance on benefits with no deposit?
It may be possible to get car finance with no deposit, even if you’re receiving benefits. However, it depends on several factors, such as your credit history and affordability.
Find out more about no deposit car finance and whether it is right for you.
How much can I borrow for car finance if I am on benefits?
The amount you could get on a car loan depends on your personal circumstances. A lender will look at several factors, such as your credit history and affordability, before offering you car finance.
We can help you finance a car from £4,000 to £35,000, subject to status and affordability.
If you already have a car in mind, make sure it meets our lending criteria. You can then use our car finance calculator to see what your monthly payments could look like.
One of our friendly experts can help you search for your car if you haven’t got one in mind yet. Get a quote and see if we can help.
How can I boost my chances of approval?
There’s several things you can do that may improve your chances of getting car finance:
- Register for the electoral roll if you haven’t already. This makes it easier for lenders to verify your identity
- Check your credit file and make sure that all of the information is up-to-date and correct
- Consider applying with a partner if you live with someone who makes an income or has a better credit history
- Cut bad financial ties if you are associated with any bad borrowers
- Use an eligibility checker or apply for car finance with a soft search to see if you can get accepted
Can I get car finance as a carer?
It is possible to get car finance if you’re a carer. However, not all lenders accept people with low incomes or those claiming benefits, so you may need to use a specialist lender.
We can help carers buy their new car, including those who receive Carers Allowance (CA). When you’re ready, get a quote and see if we can help you.
We only use a soft credit check at the point of application. It won’t affect your credit score and will give you an instant decision. We only use a hard credit check when you’ve found your dream car, and contracts are drawn up for you to sign.
Car finance on benefits FAQs
Can I get car finance on disability benefits?
Each lender has their own requirements, and some may not be able to accept benefits. However, we understand that claiming benefits doesn’t change the need to have a reliable car to get around.
To be accepted for car finance with us, you must have at least 1 primary source of income: a salary, pension, Disability Living Allowance (DLA), or Carers Allowance (CA).
You can supplement this with other benefits, including disability benefits such as Industrial Injuries Disablement Benefit, which we consider as additional income. In total, you must earn over £1,000 a month after tax.
When you’re ready, you can get a quote in less than 5 minutes and see if we can help you.
Can I get car finance with a low income?
It is possible to apply for car finance even if you have a low income. We can help you if your monthly income, after tax, is at least £1,000. Check out our accepted sources of income to see if you qualify.
If you are worried that your income may not be enough or you are unemployed and looking for car finance, you could apply with another person using joint car finance.
This means that you and another person apply for finance together, and both your details will be used to support the application. However, your combined monthly income must be at least £1,300 after tax.
Can I get a car on finance with PIP?
Unfortunately, we don’t accept Personal Independence Payment (PIP) as a source of income. However, there are several benefits that we do accept. Check out the list of incomes we accept to see if you qualify.
Can I get guaranteed car finance on benefits?
It isn’t possible to guarantee car finance on benefits, because it doesn’t exist. No responsible lender will offer this, because they must use affordability and credit checks to assess your eligibility.
It is unethical to claim that you can guarantee approval to anyone, including people on benefits, because everyone’s eligibility is different.
The FCA’s rules mean that lenders must assess the creditworthiness of a customer before they can offer credit. Also, the Consumer Credit (Advertisements) Regulations 2010 protects customers from false or misleading claims, such as ‘guaranteed car finance on benefits’.
You should be wary of any lender claiming to offer this. For a full explanation, please see page that dispels the myth of guaranteed car finance.
Can I get car finance on benefits with no deposit?
It may be possible to get car finance with no deposit, even if you’re receiving benefits. However, it depends on several factors, such as your credit history and affordability.
Find out more about no deposit car finance and whether it is right for you.
How much can I borrow for car finance if I am on benefits?
The amount you could get on a car loan depends on your personal circumstances. A lender will look at several factors, such as your credit history and affordability, before offering you car finance.
We can help you finance a car from £4,000 to £35,000, subject to status and affordability.
If you already have a car in mind, make sure it meets our lending criteria. You can then use our car finance calculator to see what your monthly payments could look like.
One of our friendly experts can help you search for your car if you haven’t got one in mind yet. Get a quote and see if we can help.
How can I boost my chances of approval?
There’s several things you can do that may improve your chances of getting car finance:
- Register for the electoral roll if you haven’t already. This makes it easier for lenders to verify your identity
- Check your credit file and make sure that all of the information is up-to-date and correct
- Consider applying with a partner if you live with someone who makes an income or has a better credit history
- Cut bad financial ties if you are associated with any bad borrowers
- Use an eligibility checker or apply for car finance with a soft search to see if you can get accepted
Can I get car finance as a carer?
It is possible to get car finance if you’re a carer. However, not all lenders accept people with low incomes or those claiming benefits, so you may need to use a specialist lender.
We can help carers buy their new car, including those who receive Carers Allowance (CA). When you’re ready, get a quote and see if we can help you.
We only use a soft credit check at the point of application. It won’t affect your credit score and will give you an instant decision. We only use a hard credit check when you’ve found your dream car, and contracts are drawn up for you to sign.
Refused car finance
We might be able to help if you’ve been refused by other lenders. We’re specialists in providing vehicle finance to those with bad credit.
Our application process
We know that buying a new car can be a stressful process. There are lots of important factors to consider, so it can be daunting. That’s why we’ve put together a helpful guide.
Car finance explained
Our guide explains how car finance works and the different types of car finance available, so you can choose the option that’s right for you.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
